WARRIORS SIGN NBA’S LARGEST JERSEY SPONSORSHIP DEAL; TWICE THE VALUE OF THE LEAGUE’S 2ND LARGEST DEAL

The defending Champion Golden State Warriors have inked the league’s largest advertising patch deal, signing a 3 year $60 million agreement with Rakuten (OTC: RKUNY); twice what Goodyear (GT) will pay Cleveland (league’s 2nd largest deal). As part of the deal, Rakuten will also have naming rights to the teams practice facility and receive 6 other designations (i.e. the official e-commerce partner), that span longer than 3 years. Golden State had stated it was crucial they partner with a worldwide brand, to grow their global vision. The Apex Marketing Group, a sponsorship evaluation firm, has estimated RKUNY could expect to receive $32-37 million worth of exposure from the sponsorship this season.

Howie Long-Short: Rakuten, a Japanese company that owns Ebates, Viber & Kobo, is betting on a future without apps. Their gaming company, Rakuten Games, delivers titles that can be played on web browsers; as opposed to requiring installation on phones or PCs. RKUNY sees a $50 billion mobile gaming market and wants a slice. With 114 potential users in its database, I wouldn’t bet against them taking it.

Fan Marino: This is the 2nd major sports marketing partnership that Rakuten has signed within the last 60 days. The company is paying $262 million (4 years) for the rights to have their name appear across the chest of FC Barcelona jerseys. It is now a matter of when the other U.S. pro sports leagues (NFL, MLB, NHL) will implement jersey sponsorships. There is far too much money being thrown around, for those league’s owners to sit idly by.